Rising material costs and oil prices are placing the trades industry under increasing pressure, with a recent study by Trade Direct Insurance revealing that 35% of bricklayers are stressed about costs. Amid an ongoing skills crisis, one in three (34%) tradespeople are also experiencing poor mental health. Rising costs are adding to the pressure, heightened concerns about future job demand, and creating further barriers for individuals considering a career in the industry.
Patricia Gardiner, Sales and Marketing Director at Trade Direct Insurance, shares her thoughts on the rising costs facing the industry: “As the construction industry continues to experience a prolonged period of decreased output, rising material costs, and oil crises driven by the ongoing situation in the Middle East, it threatens to put more tradies out of work.
“Many can no longer afford the increasing costs of doing business. This is worsening the already severe skills gap in the UK trade industries.
“The price of materials is on an upward trajectory, with cost increases occurring frequently, making it difficult for tradespeople to set fixed prices for new projects and causing unnecessary stress. Many are having to take cautionary measures and plan to protect their own businesses by reassessing how much they charge customers for work.
“This can cause its own problems, however. Setting prices too high can lead to lost business or customers postponing or outright cancelling planned work. With fewer new projects coming through and existing ones being put on hold, competition for larger jobs is intensifying. That is placing even greater pressure on tradespeople to keep prices both sustainable and competitive.
“In light of these challenges, the future for many tradespeople is looking very uncertain, no doubt negatively impacting their mental health, and contributing to the ongoing worsening mental health crisis in the trades.
“To effectively address the looming skills crisis in construction and the trades, the government needs to take action to curb rising oil and materials costs. Failing to do so risks forcing more tradies out of business and making the industry less accessible to people looking to start their careers.
“Measures like reducing business rates or increasing the VAT threshold for tradespeople will help to offset some of the rising costs they are facing. Additionally, offering incentives for tradies willing to take on apprentices will help the industry to maintain a healthy pipeline of workers without negatively impacting business finances.
“The government can also do more to address the wider issues facing tradespeople, including backing the upcoming tool theft bill. It should also follow through on its pledge made earlier this year to take tougher action against customers who delay or withhold payment for work.
“The industry is facing a tipping point caused by a new crisis that threatens to worsen existing issues affecting the industry. It is vital that action is taken to prevent any further weakening of the sector.”
